September 8, 2000
                                   DO-00-033


MEMORANDUM

TO:       Designated Agency Ethics Officials
                                                  
FROM:     F. Gary Davis
          Acting Director

SUBJECT:  Proposed Amendments to 5 C.F.R. part 2640


     The Office of Government Ethics (OGE) has issued a proposed
rule at 65 Fed. Reg. 53942-53946 (September 6, 2000) that would
amend the regulation at 5 C.F.R. part 2640 by revising some
existing exemptions and adding new exemptions.  Part 2640 describes
financial interests that are exempt from the prohibition in
18 U.S.C. § 208(a).  Section 208(a) generally prohibits employees
of the executive branch from participating in an official capacity
in particular matters in which they or certain others specified in
the statute have a financial interest.  Section 208(b)(2) of
title 18 permits OGE to promulgate regulations describing financial
interests that are too remote or inconsequential to warrant
disqualification pursuant to section 208(a).  This proposed
regulation would raise the de minimis exemption for matters
affecting interests in securities to $15,000 and would identify
additional financial interests that would be exempt from the
prohibition in section 208(a), including, in limited circumstances,
the holdings of sector mutual funds (1), and securities issued by a
nonparty affected by a matter in litigation.

     Please refer to OGE's web site at www.usoge.gov for a copy of
the proposed rule.  Any comments must be submitted to OGE not later
than December 5, 2000.

____________________________

     1  OGE also recently issued DAEOgram DO-00-030 (August 24, 2000) 
that describes how agencies can analyze whether a particular 
fund is diversified or whether it is a sector fund for purposes of
part 2640.